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The geopolitical and market bogeymen of the moment – Kim Jong Un, Vladimir Putin, tariffs, cyber warfare – are riding tall in the saddle.
That’s sparked something of a “flight to safety,” which ignited a bit of an uptick in demand for Treasuries this …

If targeting political extremes generates the most profit, then that’s what these corporations will pursue.As many of you know, oftwominds.com was falsely labeled propaganda by the propaganda operation known as ProporNot back in 201…

This weekend, I’d like to take a slightly nostalgic trip down Memory Lane, into the dark, swirling menacing pool that was the dawn of the Internet. OK, that sentence didn’t end up quite where I meant it to.

When I started my newsletter business in October of 2000, I decided to have a little fun with it on this new thing called the World Wide Web, aka “the internet.” If you, like me, are of a certain age, you remember well that we started every web address with the ubiquitous www.

WSJ: “Ten Years After the Bear Stearns Bailout, Nobody Thinks It Would Happen Again.” Myriad changes to the financial structure have seemingly safeguarded the financial system from another 2008-style crisis. The big Wall Street financial institutions…

It has been 2 months since I last had a chance to respond to reader comments. This seems like a good time to pause and take the opportunity to do so again. Keep them coming!

Today, since I’m in a contrarian mood, I thought I’d focus on ever-so-kindly replying to people who don’t see eye to eye with me…

I really enjoy these exchanges. They get my creative analytical juices flowing, and force me to consider alternative viewpoints which I may not have done initially.

In fact, the more rebuttals I write, the kinder I feel! Which is why I’ve decided to report a special gold opportunity today (continuing our prickly theme with an investment that is the very definition of contrarian right now).

If indeed this inflation hysteria has passed, its peak was surely late January. Even the stock market liquidations that showed up at that time were classified under that narrative. The economy was so good, it was bad; the Fed would be forced by rapid economic acceleration to speed themselves up before that acceleration got out…

We expect gold prices to gain 11.7% this year thanks to rising demand and slipping global supply. That means gold will be a great long-term asset to have in your portfolio this year.

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Despite some weakness over the last month, the gold price is up 8.8% to $1,253 so far in 2017. And Money Morning Resource Specialist Peter Krauth expects it to rise another 11.7% to $1,400 per ounce by the end of this December.

But while physical gold could give you that 11.7% return in just over seven months, we’re looking at another gold investment that could see a more explosive gain. This gold mining stock could potentially soar 63.6% over the next 12 months.

Liquidity moves markets!

Before we get into that, here’s how gold prices have trended this year and what their rebound could do for our gold stock recommendation today…

Gold Is Still a Good Long-Term Investment Despite Recent Declines

Investors might be worried about gold because prices dropped from late April to early May. The metal fell 6% from $1,294 on April 18 to $1,216 on May 9.

One factor was the election of French President Emmanuel Macron on May 7 over right-wing candidate Marine Le Pen. After the first round of the election on April 23, Macron’s huge lead over Le Pen reassured investors there would be no market volatility. They speculated that Le Pen winning would have resulted in France pulling out of the European Union (EU). A Frexit following last year’s Brexit would have further destabilized the already fractured EU, possibly leading to a big stock market sell-off.

But Macron’s victory meant no market volatility. Since gold prices typically rise when the market dips as investors use gold as a safe-haven hedge, the metal instead fell to a two-month low of $1,216 on May 9.

Still, gold’s brief decline was only temporary. After all, the metal has rebounded 3% to $1,253 since the May 9 bottom. Krauth believes this rebound will continue to $1,400 per ounce, and there’s one important reason why he’s bullish…

It’s simple: falling supply and rising demand.

Krauth’s forecast is driven by gold fundamentals. Demand is climbing around the world at the same time as supply is falling. That’s a perfect recipe for a rising gold price this year.

Recent data from the World Gold Council showed that global demand in the first quarter was 1,034.5 tons. Gold supply during the same time frame was 1,032 tons. As you can see, supply is coming up short of demand.

Demand for gold is steady worldwide. Investors in Europe, especially in the UK and Germany, purchased eight times more gold exchange-traded funds (ETFs) than investors in the United States. Moreover, Q1 2017 was the third consecutive quarter that gold ETF demand from Europe was greater than U.S. demand. This likely indicates the unease caused by the Brexit and the prospect of Frexit.

Gold demand has also remained strong in Asian countries. Recently, a UBS research report on gold indicated an expectation of gold prices trading in a tight band for a while as concerns over the French election subside. UBS also said that the price of gold falling near $1,200 might spur discount buying.

All of this shows how gold is set to continue its rebound throughout 2017. But instead of investing in physical gold, we recommend buying this gold mining stock, which could rally 63.6% by May 2018…

The Best Gold Stock to Invest in This Year

Within the gold mining sector, you should consider buying shares of Goldcorp Inc. (NYSE: GG).

Goldcorp is one of the world’s leading gold producers, and it plans to keep it that way. Company management intends to increase production by up to 20% through 2022. This can only bring the company more profits as the gold price keeps rising and it makes more money on each ounce sold.

Investors interested in GG stock should also know that Goldcorp’s all-in sustaining cost (AISC) – which measures how much it costs to produce one ounce of gold – is $812. That’s among the lowest in the gold mining sector.

From Dec. 31 to March 27, Goldcorp stock gained 18% to $16.05. However, it has since fallen 15.6% from that peak to the current $13.55 level.

The share price likely dipped as investors briefly worried about the firm’s capital expenditures. On March 28, Goldcorp bought a stake in a Chilean mine in partnership with its competitor, Barrick Gold Corp. (NYSE: ABX). The partnership is likely to be very beneficial for Goldcorp’s bottom line over the long term.

Analysts from Thomson Reuters predict GG stock could surge to $22 per share by May 2018. That would be a 63.6% return from the current share price of $13.45.

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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